Author: – Subhadeep Chattoraj
Introduction: – SpiceJet is an Indian budget airline headquartered in Gurgaon, Haryana. It is the second-largest airline in the country by the number of domestic passengers carried, with a market share of 13.6% as of March 2019. The airline operates 630 daily flights to 64 destinations, including 54 Indian and 15 international destinations from its bases in Delhi and Hyderabad.

SpiceJet Limited is publicly traded under NSE: SPICEJET, with a market capitalization of about ₹2,214.28 Cr as of 1 April 2020.

Objective: – To calculate the Beta and its Significance.

Data Collection: – Data for Equity & Nifty has been downloaded from the NSE site for the period from 01st Jan 2022 to 31st Dec 2022. The data was edited and manipulated to get Friday’s closing price, weekly returns found out of Nifty were considered as” X” and weekly reports of equity were considered as “Y”.

Data Analysis: – Demand Y= – 0.868 – 0.941 NIFTYRET X + e
(t-sat= -2.593)
N=49, R2 = 0.125, F = 6.726
t-sat of b is shown in the bracket as (-2.593).
The P-value for this is 0.012 which is less than 0.05 meaning ‘b’ is statistically significant at the 5% level.
N = 49
R2 = 0.125 which means 12.5% of Y is explained by X and balanced 87.5% is unexplained i.e. error.
F = 6.726
The p-value for this is 0.012 which is less than 0.05 which means that the overall model is statistically significant at the 5% level.
The above equation tells us about the relationship between Nifty and Equity returns. A negative (-) sign shows an inverse relationship which means if the market goes up share price goes up.

Conclusion: – As Beta is more than 1 it is good for investment, if Beta is less than 1 it is not good for investment if the Nifty rises.

Report By: – Subhadeep Chattoraj – 021230022066 – OSCM Batch